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COLORADO SPRINGS, Colo., June 28, 2010 (GLOBE NEWSWIRE) -- Cannabis Science, Inc. (OTCBB:CBIS - News), a pioneering U.S. biotech company developing pharmaceutical cannabis products, reports an important milestone for the continued validation of medical cannabis, as UK-based GW Pharmaceuticals (http://gwpharm.com/) receives $15 million milestone payment from Bayer. This payment to GW is based on the UK Government's approval of the "First Prescription Cannabis Medicine", GW Pharmaceuticals Sativex(R), an "Oromucosal Spray" tincture for the treatment of spasticity due to Multiple Sclerosis (MS). Analysts at Piper Jaffray forecast that peak sales could reach $180 million in Europe and Canada combined. Presently, GW has a market capitalization of over $260 million.
Richard Cowan, Cannabis Science CFO noted, "Bayer's $15 million 'milestone payment' to GW clearly puts the world on notice that pharmaceutical cannabis is now 'mainstream'. Previously, the US FDA granted GW a Phase III IND for Sativex, and a Phase IIb/III trial for cancer pain is currently ongoing. GW has also received an 18 million dollar licensing fee from Otsuka for the US rights, and they also received millions more from licensing fees from Almiral of Spain for the European rights outside of the UK. The licensees also pay for the work necessary for regulatory approval. Clearly, Big Pharma recognizes the explosive growth this industry is experiencing and does not want to be left behind. Obviously, licensing of products and territories -- which is common for new biotech companies -- suggests another important way Cannabis Science can move forward with its financing objectives."
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